ASEAN memo preventing supplies disruption during pandemic takes effect

MANILA, Philippines — A memorandum of understanding (MOU) signed by the Association of Southeast Asian Nations (ASEAN) to ensure the smooth flow of essential goods and prevent supplies disruption during the COVID-19 pandemic took effect on Friday.

The MOU includes a list of 152 essential goods, consisting mostly of medical goods such as test kits and equipment. It is based on a list jointly drawn up by the World Trade Organization (WTO) and World Health Organization (WHO).

The MOU is part of the Hanoi Action Plan on strengthening supply chain connectivity adopted in June 2020. It commits ASEAN Member States (AMS) to refrain from imposing restrictive trade measures on essential goods and supplies except for public health emergencies.

AMS also aim to unilaterally roll back all non-tariff measures (NTM) on essential goods that do not conform to the WTO agreement. In cases where complete rollback of NTMs on essential goods is not feasible, AMS will discuss an appropriate modality to address NTMs’ trade-distorting effects, if any.

“Once enforced, the MOU proves ASEAN’s unanimous cooperation to facilitate the smooth and seamless flow of essential goods in the region,” ASEAN Secretary-General Lim Jock Hoi said.

“It will play a vital role in mitigating the economic impact of COVID-19 to the ASEAN, strengthen the supply chain connectivity, and reduce administrative burden on businesses during this trying time,” he added.